We have pleasure in presenting this Annual Report of the company for
 the year 2010-11.
 
 Financial Results
 
 Brief summary of the Companys financial performance is as under:
 
                                     Rs. in crore except per share data
 
 Particulars                        2010-11      2009-10       +/ - %
 
 Net Sales                          3511.87     3,632.12        -3.3%
 
 Other Income                         46.77        75.84       -38.3%
 
 Total Revenue                      3558.64     3,707.96        -4.0%
 
 Operating Expenditure              2626.23     2,129.61        23.3%
 
 Earning before Interest, 
 Depreciation and
 Taxes (EBIDTA) (before 
 exceptional items)                  932.41     1,578.35       -40.9%
 
 Interest                             97.83        76.58        27.7%
 
 Earning before Depreciation 
 and Taxes
 (before exceptional items)          834.58     1,501.77       -44.4%
 
 Depreciation                        675.76       570.43        18.5%
 
 Earning before Taxes and 
 Exceptional Items                   158.82       931.34       -82.9%
 
 Exceptional Items                    48.47        63.43       -23.6%
 
 Earning before Taxes                110.35       867.91       -87.3%
 
 Taxes:
 
 Current Tax                          21.71       208.85
 
 Deferred Tax                        -59.85        -2.01
 
 MAT Credit Entitlement               -2.13          -
 
 Prior Period Tax (Net)              -58.74       -14.76
 
 Fringe Benefit Tax of Earlier Years 
 Written Back                         -0.34        -0.27
 
 Earning after Taxes                 209.70       676.10       -69.0%
 
 Earning Per Share (EPS)
 
 Basic and Diluted                    60.19       194.07       -69.0%
 
 Cash                                236.99       369.77       -35.9%
 
 Appropriations:
 
 Interim Dividend @ Rs. 6/- per 
 share & Final Dividend @ Rs. 8 per 
 share on Equity share (Previous 
 year Interim Dividend @ Rs. 5/- 
 per share & Final Dividend @ Rs. 
 8/- per share on Equity share)       48.77        45.29 
 
 Tax on dividend distribution          7.99         7.59 
 
 Transferred to Debenture Redemption
 Reserve                             125.00        75.00 
 
 Transferred to General Reserve       25.00       220.00
 
 Dividend
 
 The Directors are pleased to recommend a final dividend @ Rs. 8/- per
 share. Together with interim dividend of Rs. 6/-per share, total
 dividend for the year 2010-11 would be Rs. 14/- per share. (Previous
 year total dividend amounted to Rs. 13/- per share). The total outgo on
 dividend payment for the current financial year amounts to Rs. 56.76
 crore including Dividend Distribution tax of Rs. 7.99 Crore as against
 Rs. 52.88 crore including Dividend Distribution tax of Rs. 7.59 Crore
 in the previous year.
 
 Research and Development
 
 Company has strong R&D focus with a dedicated team of professionals who
 regularly undertakes new initiatives aimed at improving quality and
 energy efficiency, utilizing alternative fuel and raw materials, new
 product development and resource optimization.
 
 Sustainability - Triple Bottom-line approach
 
 Companys approach to sustainability encompasses the triple bottomline
 approach of measuring business performance against the three aspects of
 people, planet and profit all of which carry equal importance to
 achieve overall growth. Company has undertaken several measures towards
 conservation of natural resources, climate change and environment
 management and to run its operations in a way which enhances the
 overall prosperity of its stakeholders.  Environment Management -
 Company has adopted a structured approach to environment management
 which encapsulates measurement of impact, identification of remedial
 measures and implementing the same as well as continual improvements
 thereon. This structural approach has ensured that environment
 management is recognized as one of its key parameter in all business
 decisions. Some of the accomplishments of the company in Environment
 management included saving of petcoke fuel equivalent to approx. 1.05
 Lac ton through successful operation of Waste Heat Recovery Power
 plants, saving of water to the tune of approx 0.68 million kilo liters
 at its Beawar power plant through replacement of Water Cooled
 Condensers by Air Cooled Condensers (ACC) and plantation of more than
 50000 tree saplings for increasing the green cover. Realizing the need
 for water conservation in the water deficient status of its area of
 operations, Company decided to implement ACC in its 300 MW power
 project also. Several rain water harvesting structures have been
 constructed to recharge the ground water in the surrounding areas of
 Companys operations.
 
 The Waste Heat Recovery power generation plants have enabled saving of
 350064 Ton CO2 emission. Company is in advanced stage of registering
 these projects with United Nation Framework Convention on Climate
 Change (UNFCCC) under the Clean Development Mechanism (CDM). Company
 actively participated at various global forums which are working on
 various initiatives on matters relating to energy conservation, optimal
 use of resources and environment protection etc. Company also
 celebrated World Environment Day on 5th June 2010 and organized
 workshops to create awareness about environmental safety & management,
 conservation of natural resources and reduction in pollution.
 
 Social Aspect - Corporate Social Responsibility
 
 The Corporate Social Responsibility activities at Shree are aimed at
 creating sustainable livelihood capabilities and increasing the level
 of prosperity of the local community. For this, Company has undertaken
 several measures for providing health and education facilities,
 infrastructure support to the local community and other welfare
 activities. Notable measures taken by the company in its endeavor
 towards social upliftment are:
 
 Health - Company provides 24x7 free medical services at its premises as
 well as free ambulance and fire fighting services to the people in its
 local community. It also provides medical services through fully
 equipped mobile medical team which visits the nearby villages on a
 regular basis and distributes free medicines. Shree also conducts
 health camps, eye camps and AIDS awareness campaign from time to time.
 Education - Company contributed Rs. 2 crore to an Education Society
 which is engaged in upliftment of the literacy level and standards of
 education. The Companys contribution shall help the Society in
 furthering its objectives. Shree has also undertaken an education
 project SHREE KI PATHSHALA” for drop out or non-school going girls in
 nearby areas of its operations. It has established rural library at
 nearby villages to help villagers develop reading habits. It organized
 workshop for school children to advise them about career choices.
 Company supported an NGO for providing notebooks on subsidized rates to
 under privileged children. It also contributed financially for sports
 equipment and celebrating Children Day, Republic Day, Independence Day
 etc.
 
 Infrastructure - Company constructed cement concrete road, ward and
 prayer hall at Government Hospital Beawar at approx. cost of around Rs.
 31 lacs. It also provided around 250 water tanks to local bodies and
 Panchyat for arranging drinking water. It constructed hygiene and
 sanitation facilities at schools in the nearby villages and created
 passenger facilities at local bus stand.
 
 Women Empowerment - National Girl Child Day and International Women Day
 was observed on 14th January and 8th March 2011 respectively in nearby
 villages in which theme based folk media programmes were organized on
 the subjects of girl child education, right age of marriage, gender
 discrimination. Around 300 people participated in the programs.
 
 Cultural participation - To promote cultural harmony among people,
 company regularly supports various religious and social programmes.
 One such program where Shree makes its contribution is Teja Mela” a
 local fair which is celebrated with a wide participation from local
 community. The celebration of annual Sankatmochan Hanuman Temple
 function is also another cultural promotion activity which Shree
 carries out every year. Artistes from different countries are invited
 to give their unique art performances and exhibit their culture.  Large
 numbers of people from local community come and enjoy these
 performances and also get acquainted with different cultures.  j-
 
 Occupational Health and Safety
 
 Company has well defined health and safety policies which are widely
 circulated internally to ensure appropriate attention to health and
 safety hazards and to build a safe working environment. All the plants
 have medical facilities with qualified doctors. Annual medical checkup
 is mandatory for all employees. Training related to safety aspects is
 provided to all employees prior to engaging them. During the year, 328
 safety training programs were conducted. Company motivated its
 contractors also to adopt similar Occupational Health and Safety
 practices while engaging them for Company work.
 
 There is a system of monthly review of the activities done in the area
 of health, hygiene and safety and to address challenges in these areas.
 Regular personal development sessions like Art of living” etc. are
 also conducted with a view to maintain work life balance.
 
 Human Resources
 
 Company strives to provide a fair, meritorious and competitive work
 environment to attract and nurture best talents and provides them with
 a work environment which is conducive to both professional and personal
 growth. 63041 man hours of training was imparted during the year which
 works out to 19 manhours per employee. Around 150 people were provided
 with multiskills training programmes to help them acquire cross
 functional expertise and use it through job enlargement and increased
 responsibilities. Around 800 employees were recruited during the year
 across various skill categories. Various schemes were introduced to
 enhance overall employee working environment. Company introduced
 Mentoring the Mentors” scheme wherein specific employees were
 identified to act as mentors for new comers and assist them in their
 initial period in the company.  Company follows a policy of encouraging
 youth by giving them higher and challenging responsibilities and open
 work environment. With average age of employees at 35.61 years, the
 Company is reckoned as a young organization. The year 2010-11 was
 celebrated as Youth Year”. Its employee base has a blend of
 professionals which constitutes nearly 30% of total strength.
 
 Company has developed a unique Shree family culture” which binds its
 people together and keeps them happy. As a result, their engagement
 level in the company is also very high.
 
 In recognition of its excellent human resource management which rests
 on work-life balance, the company was awarded the Greentech HR
 Excellence Silver award in best Strategy-2010.” Companys HR policy is
 targeted towards total prosperity management. Its innovative HR
 practices and family culture, promotion of youth, better compensation
 and avenues for merit based growth are some measures which has helped
 it attract and retain best talent in the industry.  Total number of
 employees as on 31.3.2011 was 3645.
 
 Corporate Sustainability Report
 
 Company issued Corporate Sustainability Report, independently assured
 by Ernst and Young, for the year 2010 highlighting the work it has done
 across the three dimensions of the triple bottom line. Your Company has
 followed the highest level A+ for reporting the triple bottom line
 performance.
 
 Risks and Concerns
 
 Company has incorporated a Risk Management Framework to facilitate
 identification and effective addressal of all its business risks.  As
 part of this framework, board members are regularly apprised of the
 risk assessment and mitigation procedures. Key Risks identified by
 company are as below:
 
 Over capacity in cement - Already the cement industry is feeling the
 pressure of over capacity which has impacted realizations and operating
 margins during the year. With more capacities coming up, these concerns
 persist in future as well. However, company believes that consistently
 increasing cement demand will be able to match the increased supplies
 in the medium to long term.
 
 Volatility in Power Sale prices - Company is expanding its power
 capacity for merchant sale purpose. As merchant power market has high
 price volatility, company is exposed to volatile power price movements.
 Company actively manages this risk by keeping a close eye on market
 movements. Company has its own trading division which helps it track
 market movements and sell power with different parties.  Input cost
 rise - Cost of fuel for cement production as well as for power
 generation has increased significantly during the year. Cost of raw
 materials such as Gypsum and Fly Ash has also increased during the
 year. Transportation cost has also risen as a result of rising diesel
 prices. Your Company is adequately geared to meet these challenges
 through utilization of alternate raw material and fuel sources,
 increased energy efficiency and better logistics management.  Currency
 risk - The exchange rates of Indian currency vis a vis foreign
 currencies are volatile which exposes the Company to forex risk on its
 foreign currency borrowings and Letter of Credits (L / Cs) for imports.
 Company, as a policy, hedges all its foreign currency borrowings
 through appropriate forward covers and swap instruments. All imports
 under letter of credit (barring some short duration or small amount L /
 Cs) are also hedged through appropriate forward cover.  Govt. Policies
 - Macro policies including interest rate policies of the Government
 will impact investment demand.
 
 Awards & Recognitions
 
 Company continued to be recognized and appreciated at various forums of
 repute for its efforts to consistently implement and follow best
 practices in the field of Corporate Governance, Environment Management,
 Energy Efficiency, Human Resources, Information
 
 Technology, Safety etc. Notable among them are National Award for
 Excellence in Energy Management 2010 from the Ministry of Power,
 CII-ITC Sustainability award, Golden Peacock Award for Climate Security
 2010 and Greentech HR Excellence Silver award in best Strategy-2010.
 
 Directors
 
 Dr. Y.K. Alagh and Shri Shreekant Somany, Directors of the Company,
 would retire by rotation at the forthcoming Annual General Meeting in
 accordance with the provisions of the Companies Act, 1956 and Companys
 Articles of Association.
 
 Shri Amitabha Ghosh has ceased to be a Director of the Company w.e.f.
 27th May, 2011. Shri Nitin Desai has been appointed as Additional
 Director of the Company w.e.f. 27th May, 2011.
 
 Directors Responsibility Statement
 
 Pursuant to the requirements of Section 217 (2AA) of the Companies Act,
 1956, the Directors, to the best of their knowledge and belief and
 according to the information and explanations obtained by them, confirm
 that they have taken all reasonable steps, as are required, to ensure
 that;
 
 + The applicable accounting standards have been followed in the
 preparation of the annual accounts for the year ended 31st March, 2011
 and in case of material departures, proper explanation has been given
 in the Accounts and notes thereon.  + Such accounting policies (as
 mentioned in the Notes to the Accounts) have been selected and applied
 consistently, and that the judgments and estimates have been made that
 are reasonable and prudent so as to give a true and fair view of the
 state of affairs of your Company as at 31st March, 2011 and of the
 profit of your Company for the year ended on that date.  + Proper and
 sufficient care has been taken for the maintenance of adequate
 accounting records in accordance with the provisions of the Companies
 Act, 1956, for safeguarding the assets of your Company and for
 preventing and detecting fraud and other irregularities.  + The annual
 accounts are prepared on a going concern basis.  Auditors
 
 The Statutory Auditors of your Company M/s. B.R. Maheswari & Company,
 Chartered Accountants would retire at the ensuing Annual General
 Meeting. They have confirmed their eligibility under section 224 of the
 Companies Act, 1956 and willingness for re-appointment as Statutory
 Auditors of the Company.
 
 The Board of Directors recommends the re-appointment of M/s. B.R.
 Maheswari & Company as Statutory Auditors from conclusion of ensuing
 Annual General Meeting till the conclusion of next Annual General
 Meeting.
 
 The observations of the Auditors in their report are self explanatory
 and, therefore, do not call for any further comments of the management
 on the observations of auditors.
 
 Cost Audit
 
 Pursuant to the directives of Central Government, your Company has
 appointed M/s. K.G. Goyal & Associates, Cost Accountants as Cost
 Auditors of the Company under section 233B of the Companies Act, 1956
 for the year 2010-11.
 
 Corporate Governance
 
 A separate section on Corporate Governance together with a certificate
 from the Auditors of the Company regarding full compliance of
 conditions of Corporate Governance as stipulated under Clause 49 of the
 Listing Agreement with the Stock Exchange(s) forms part of Annual
 Report.
 
 Particulars of Employees
 
 As required under the provisions of Section 217(2A) of the Companies
 Act, 1956, read with the Companies (Particulars of Employees) Rules,
 1975, as amended, the names and other particulars of employees are set
 out in the Annexure I to this report which forms part of this report.
 
 Particulars of Conservation of Energy, Technology Absorption and
 Foreign Exchange Earning / Outgo The information required under Section
 217 (1)(e) of the Companies Act, 1956 read with Companies (Disclosure
 of particulars in the report of the Board of Directors) Rules, 1988 is
 set out in Annexure II annexed hereto and forms part of this Report.
 
 Acknowledgement
 
 Your Directors take this opportunity to place on record the co-
 operation and support received from various agencies of the Central
 Government and State Government(s), financial institutions and banks.
 Your Directors thank and express their gratitude to various
 stakeholders i.e. customers, dealers, suppliers, transporters,
 advisors, local community etc. for their committed engagement with the
 Company. Your Directors further appreciate the support and co-
 operation received from the employees for their contribution to the
 growth and success of the Company. Your Directors further express their
 deep sense of gratitude to the Shareholders for your confidence, faith
 and trust in the Company.
 
 Your Companys consistent growth has been made possible only through
 the dedication and support of all the above stakeholders and we expect
 this support and confidence to keep growing.
 
                                        For and on behalf of the Board 
 
 Place: Kolkata                                           B. G. Bangur
 
 Date: 27th May, 2011                               Executive Chairman